Adidas (Reebok as part of a strategic overhaul.) says it will offload struggling US fitness brand
The German sportswear company said in a statement on Tuesday that it has decided to begin a formal process “aimed at divesting Reebok” following a review of the business that it announced late last year.
“Reebok and Adidas will be able to significantly better realize their growth potential independently of each other,” CEO Kasper Rorsted said. “We will work diligently in the coming months to ensure a successful future for the Reebok brand and the team behind it,” he added.
The decision to sell Reebok was made as part of a new five-year strategy that Adidas will unveil on March 10. It bought the US label 15 years ago in a bid to expand its reach in Nike ()’s home market. Reebok at the time had apparel deals with the National Basketball Association (NBA) and the National Football League (NFL).
But the brand has underperformed in recent years and lost market share. It now accounts for just 7% of Adidas’ sales, down from about 18% in 2010, according to financial statements.
Rorsted launched a turnaround plan in 2016 after taking over as Adidas CEO, which returned Reebok to profitability in 2018 and saw it land endorsement deals with celebrities such as Ariana Grande and Cardi B.